AAR Corp. Reports Solid Earnings (AIR)

AAR Corp. AIR reports Q1 earnings of $0.35 versus consensus of $0.30. AAR Corp. reports revenues of $412.2 million versus consensus of $381.51 million. Sales to government and defense customers increased 45% over last year and were driven from sales at Aviation Worldwide Services, which was acquired in the fourth quarter of fiscal 2010, and growth at the company's defense logistics business. During the first quarter, the company purchased 150,000 shares of its common stock on the open market pursuant to a board of directors stock repurchase authorization, at an average acquisition price of $16.92. "We are encouraged by our first quarter results and believe they reflect the early stages of recovery in demand for commercial aviation products and services. As the commercial market recovery continues to develop, we expect that our financial results will continue to improve," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. Storch continued, "We are also pleased with the results of AWS which is performing ahead of plan. This acquisition allows us to achieve a more strategic balance between products and services offered to our government and defense customers. During the first quarter, in this business we made additional investments in new aircraft to support recent contract awards and in rotable spares to improve the operational readiness of the existing fleet." Shares of AIR are higher in the after-hours by 1.93%.